The Monthly Update - August 2025

Preparing Your Property for the Fall Market

It’s not riveting, but it’s necessary. As the Manhattan and Brooklyn summer real estate markets scale back—true to historical patterns—we’re seeing fewer new listings, fewer properties going into contract, and more sellers pulling their homes off the market. Buyers and sellers alike are taking their final vacations of the season, which makes this the ideal time for sellers to reflect if their property didn’t sell during the spring market.

Now is the moment to make interior adjustments, consider price updates, and prepare to recalibrate, reload, and re-launch for the fall market.

As of this newsletter, there are roughly 6,500 listings available for sale in Manhattan. Expect that number to dip just below 5,500 by Labor Day weekend. August isn’t known for listing activity—but it can be a brief window for buyers to find opportunities. Sellers who stay on the market in August are often viewed as more serious—or more motivated—which can present an opening for savvy buyers to strike a deal before fall inventory floods the market.

Contrary to popular belief, September is one of the slowest months for properties to go into contract, but it’s one of the busiest for new listings. It’s important to remember: listings come on the market first, then they typically go into contract about 30 days later. More listings bring more buyers, but the surge in fall supply tends to hit right after Labor Day.

So, how do you get your property ready for fall?

It starts by shifting your mindset: think of your property as a product, not your home. Get the “product” ready for market with a fresh coat of paint, decluttering, and updated staging. Use furniture that appeals to the widest range of buyers—think WestElm, CB2, or even IKEA. You may not love it personally, but that’s not the goal. You want clean, tidy, neutral, and relatable. Buyers need to walk in and imagine themselves living there.

Once the property looks the part, the next (and arguably bigger) piece is pricing.
Pricing a new or relaunched listing right from day one can be the difference between 3 weeks or 3 months on the market. After analyzing thousands of Manhattan sales over several years, the results are clear — listings priced correctly from the start spent a median of just 31 days on the market and sold with only a 1.9% median discount from the original asking price. Overpriced properties lingered, often for months, and closed with far deeper discounts.

There’s a reason your property didn’t sell in the spring—and in markets like Manhattan and Brooklyn, pricing is everything. These markets are incredibly efficient, and if you’re overpriced, the market will tell you in 30 to 40 days. Be honest with yourself, and make sure your broker is honest with you. Consider pricing your property just below competing listings to create a sense of urgency among buyers.

If you’d like more information on how to prepare your home for the fall market—or if you know someone who’s looking for a new direction this season—please don’t hesitate to reach out. The Hoffman Team is always here to help you maximize the value of your most important asset.

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Local Happenings

The U.S Open

The U.S. Open runs August 18–September 7 at the USTA Billie Jean King National Tennis Center in Queens. Don’t miss Fan Week (Aug 18–23) with free events and player practices before the main draw begins.

Click here for more details!

Rooftop at Pier 17

This August, The Rooftop at Pier 17 is bringing the energy with shows from The Fray, Cody Jinks, Fitz and The Tantrums, Andy Grammer, and more. With epic views and summer vibes, it’s one of NYC’s top spots for live music.

Click here for more details!

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The Monthly Update - July 2025

New York City's FARE Act: How This New Law Might Affect the Future Sales Market

The new law: On June 11, the Fairness in Apartment Rental Expense (FARE) Act passed last year by the New York City Council went into effect. Essentially, the law shifts the responsibility of paying broker fees from the tenant to the landlord or the property manager who hires the broker. If a landlord or management company hires a broker to list an apartment for rent, they must pay the broker fee, not the tenant. However, if the tenant hires a broker, they pay the fee. In short, the new legislation shifts the responsibility of the broker fee to the person who hires the agent to represent them.

Incidentally, from my experience selling and renting real estate in Manhattan and Brooklyn for over two decades, I'm well aware that renters haven't always paid broker commissions. The fee shifted from landlord to renter depending on the climate of the current market. There have been very tight rental markets with very low vacancy rates, and in those markets, the renter generally paid the fee, but not always. Paying agent's fees, plus giving renters incentives, have always been tools landlords used to lure renters into leasing in their buildings. Free gym memberships, free move-in fees, and discounted rents if the lessee signed for multiple years are all used to incentivize renters. In softer markets with higher vacancy rates, the term “no fee” apartments is used to signify to the renter that the landlord is paying the agent's commission. 

So, the pendulum of the agent fee swings back and forth depending on the property, the landlord's need and market conditions. However, now, no matter the market conditions, the commission for renting is the responsibility of the person who hires the agent to represent them in the rental transaction. 

Fall out: Immediately after the FARE went into effect, rents jumped by about $745 a month on average. Landlords and managing agents, who now have to pay at least one month's broker fee to the agent for leasing out their property, will simply amortize that cost into the existing rent, raising the rent to cover the broker fee.

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The average rent in New York City between January 1 and June 10 was roughly $4,750 a month. From June 11 to about June 27, the average rent climbed to about $5,495 (+15.7%) a month. It's worth noting that rent prices do tend to peak in the summer months, and most recent data shows average rent declining slightly in some reports.

How might this affect the sales market? Under current market conditions, rents were already increasing before the FARE Act. Now, they might grow even faster because managing agents and landlords need to pay their brokers. This situation could definitely affect sale prices, particularly if mortgage rates start to drop and the monthly average rent increases. 

One of my colleagues ran the numbers: She took an average one-bedroom apartment in Gramercy and a 20% down payment with an average HOA/common charges fee of $1,500 a month and an average sale price of $750,000. She calculated that the monthly cost would be about 10% less, on average, than the average rent for that neighborhood, which is currently $6,000 a month. It's an interesting argument; however, a fluctuating sale market and ever-increasing rental prices often change from week to week or month to month. 

We saw this a few years back when interest rates climbed to 8% and even 9%. The immediate result in the sales market was that it was no longer cost-effective for buyers to put 20% to 25% down on a purchase and pay substantially more in monthly costs than a rental might be. Especially when holding their down payment in a stock portfolio would offset any losses they would incur from "wasting money" on rent. In that scenario, many New Yorkers found their personal economics dictating they should not purchase real estate back in 2022 and 2023. But, everything is cyclical, and the buyers that weren’t purchasing back then and rented instead put a strain on the overall rental market and caused rental prices to start to increase. 

The FARE Act is going into effect in a tight rental market with less than 1% vacancy. Meanwhile, landlords are seemingly increasing rent prices to pay for the brokers representing their properties. This all adds up to an interesting few months ahead. Will rents continue to climb? Will previously reluctant buyers start to dip into the sale market for relief? No matter what the FARE Act fallout, we'll be watching this summer's real estate market with fascination!

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Team News

The Hoffman Team Was Ranked #6 in NYC

We’re beyond honored to share that we’ve been named the #6 real estate team in New York City and #96 in the entire nation by The Wall Street Journal and RealTrends for 2024, based on closed sales volume.

This milestone wouldn’t be possible without the trust, loyalty, and support of our incredible clients and customers. Whether you bought, sold, referred, or simply believed in us, thank you. Your confidence in our team means the world.

Every deal is more than just a transaction — it’s a relationship, a chapter in your life story, and a commitment we don’t take lightly. We're so grateful to be part of your journey and to continue raising the bar together.

- Ranked #6 in New York City

- Ranked #9 in New York State

- Ranked #96 in the U.S.

- Ranked in the top 0.01% of all real estate teams in the U.S.

- $171,000,000+ closed sales volume in 2024

- 76 closed sales in 2024

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Local Happenings

Macy's 4th of July Fireworks

JULY 4TH, 2025

Celebrate Independence Day with the nation’s largest fireworks display! The iconic Macy’s 4th of July Fireworks return to light up the NYC skyline with a dazzling show launched from barges along the East River. Enjoy synchronized pyrotechnics, a patriotic soundtrack, and prime views from Manhattan, Brooklyn, and Queens waterfronts.

Click HERE for more information!

FIAF Bastille Day Celebration

JULY 13TH, 2025

Celebrate French culture at NYC’s largest Bastille Day fête! Hosted by L’Alliance New York, this lively street fair features live music, can-can dancers, champagne tastings, French eats, artisan booths, and family-friendly fun across four festive blocks. Join thousands of revelers for a day of joie de vivre on the Upper East Side!

Click HERE for more information!

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Listing Spotlight

The Monthly Update - June 2024

High-End Heat: A Look at May's Luxury Market Data

Manhattan’s luxury real estate market is surging. During the week of May 19th, 55 contracts were signed for properties priced at $4 million and above—marking the busiest single week in the segment since November 15th, 2021, when 67 contracts were signed. For context, that 2021 figure was the highest since tracking began in 2006. The total dollar volume for the week of May 19th topped $400 million—an impressive showing for a seven-day stretch and a clear sign that confidence has returned to the top end of the market.

Looking at the full month, May 2025 stands out as the strongest May for luxury contracts signed since the post-COVID rebound in 2021 and 2022. This month, 155 luxury contracts were signed—well above the 118 recorded in May 2024 and the 129 in May 2023. The strong performance confirms that high-end buyers are returning in force, bringing renewed energy to the Manhattan luxury market.

So far this year, the upper tier is clearly leading the way. Listings priced at $2 million and above are up 18% year-over-year, while listings under $2 million have increased by just 2.6%. And it’s not just a matter of quantity—the quality of deals is improving as well. The average luxury property is now selling at just 7% below the original asking price, compared to the 15%+ discounts seen in 2021. Days on market have also dropped significantly—from 174 days to about 100—indicating a faster-moving, more competitive environment.

Several factors are fueling this momentum. Chief among them is the performance of the stock market. The S&P 500 is on pace for its best May since 1990, gaining around 6% this month alone. When markets are strong, affluent buyers tend to feel more confident—and more liquid—prompting them to move capital into real assets like real estate, especially in globally resilient markets such as New York City.

Meanwhile, the ultra-wealthy continue to accumulate capital. The U.S. now has over 6 million millionaires, nearly 11,000 centi-millionaires (with $100 million or more), and more than 850 billionaires. A substantial share of that wealth is based in New York, which remains the world’s wealth capital with more than 380,000 millionaires.

Given this backdrop, it’s no surprise that the luxury segment is moving faster and commanding stronger interest from the purchase market. Today’s high-end buyers aren’t just shopping for trophy homes—they’re making strategic financial decisions. They’re parking capital, hedging against inflation, and placing long-term bets on the strength and resilience of New York City.

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Local Happenings

The 43nd Annual Mermaid Parade

June 21st, 2025

Coney Island USA presents the 43rd Annual Mermaid Parade on. The parade begins at 1:00 PM, rain or shine. Known as the nation’s largest art parade, this vibrant celebration features imaginative costumes, hand-made floats, and an outpouring of creative expression. Spectators and marchers alike are welcome to join the post-parade festivities.

Click HERE for more information!

Free Movie at the Intrepid Museum

June 27th, 2025

Join the Intrepid Museum’s Summer Movie Series for a special screening of Pirates of the Caribbean: Dead Man’s Chest on the flight deck. Inspired by the museum’s new exhibition, Mysteries From the Deep. Doors open at 6:00 PM, with last entry at 8:30 PM.

Click HERE for more information!

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Listing Spotlight

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The Monthly Update - May 2025

Are We Seeing a Seasonal Lull — or a Market Shift?

The Manhattan real estate market entered Q2 with solid momentum. Rolling 30-day contract activity crossed 1,100 — a benchmark not seen during any of the past three spring seasons. But by late April, that momentum began to slow, aligning with seasonal expectations and possible emerging economic uncertainties.

Spring breaks, religious holidays, and travel typically lead to a dip in activity this time of year. That’s part of the current story. But a few broader market signals suggest it may not be just seasonality at play.

Contract Activity: Seasonal Dip or Something More?

Only 206 contracts were signed in the final week of April, a roughly 16% drop from the prior week. While that figure is still above historical lows, it’s lighter than what’s typically needed to sustain a strong spring market.

This slowdown overlaps with Passover and Easter, which likely muted activity. Still, comparisons to 2023 — when regional banking stress pulled weekly contract signings down to 140 — suggest it’s worth watching whether this is a brief pause or a signal of a more cautious market.

Looking Ahead: Questions Remain

Heading into May, the key question is whether contract activity can rebound back well above 200 deals per week in a stable way. So far, there’s no sharp drop, but there's also no clear sign of acceleration.

As Noah Black of UrbanDigs recently noted, “We are in the midst of a shifting market. It’s too early to tell how far, how deep, or how severe the shift will be — but you can see the early stages of it developing in the data.”

Pricing data remains solid for now. Condo resale prices in March averaged $1,493 per square foot — likely reflecting contracts signed during a stronger stretch in late winter. As April closings are finalized, we expect that trend to continue in the short term, though there’s a risk that data will soften if activity remains muted.

Conclusion: A Transitional Moment

The Manhattan market appears to be in a transitional phase — not accelerating, but not sharply declining either. The coming weeks will help clarify whether April’s slowdown was a short-term seasonal pause or an early indication of broader market hesitation. For now, the data suggests a market that’s still active but more cautious as it digests new economic variables.

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Bryant Park Spring Makers Market

Every Friday - Sunday in May

Shop local at the Makers Market by Urbanspace. More than 175 vendors will showcase art, jewelry, food, and handcrafted goods at Bryant Park from April 18 through June 1.

Click HERE for more details!

Kite Festival at Brooklyn Bridge Park

May 17th, 2025

Celebrate spring at the annual Kite Festival on Saturday, May 17th! Bring your own kite, purchase one, or craft your own on-site, and enjoy a day filled with hands-on activities, classic lawn games, and family-friendly fun. Free and open to all ages.

Click HERE for more details!

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The Monthly Update - April 2025

No Fooling! The Manhattan Real Estate Market is Gaining Strength

Before we dive into the Q1 highlights, let’s rewind to understand how we got here.

After Covid, Manhattan experienced one of its busiest markets — not because prices skyrocketed, but because deal volume surged. Fast forward to June 2022: The Fed’s actions to slow the economy sent mortgage rates from 3% to 6% and even touched 8% seemingly overnight. This shift instantly stalled momentum in Manhattan’s real estate market, which was already facing challenges pre-Covid. Since then, we've seen persistently low listing inventory and weak transaction volume. There have been occasional bursts of buyer activity, but Q1 2025 is showing the strongest recovery signs we’ve seen since mid-2022. To be clear: this is not a full-blown comeback, but it's the best market activity we’ve had in about three years.

The Volume Trap

For the past three years, Manhattan has been stuck in a low-volume market. Many sellers who bought in 2015/2016 have seen little to no price appreciation — property values and median price per square foot have been flat for nearly a decade. Naturally, sellers have been reluctant to list if it means losing money. Rising interest rates didn’t help either.

But here’s the good news: In the past month, more listings have hit the market, offering buyers more choices. At the same time, mortgage rates have been gradually falling and now sit around 6.25%. Many buyers can even secure rates below 6% through relationship banking or lender incentives.

A Notable Shift

For the first time in over a year, we’ve surpassed 1,000 contracts signed in a 30-day window. The big question now is: can this momentum last? Many experts are optimistic about Q2 2025 thanks to three key factors:

• Increased inventory

• Lower interest rates

• Strong local economic indicators — including record-setting Wall Street bonuses. This year alone, $47 billion will be paid out to executives, with the lowest bonus coming in at $244,000 — enough for a healthy down payment on a Manhattan one-bedroom. Bonuses are up over 31% compared to last year, giving buyers additional purchasing power.

Pricing is Critical

Despite the encouraging signs, this isn’t a market where sellers can price aggressively. Buyers remain highly sensitive to pricing. If a property is overpriced and lingers on the market for more than 120 days, sellers typically end up accepting about 9% less than the reduced asking price. However, if a property goes into contract within the first 60 days, that discount shrinks to just 2%.

In short, correctly pricing your property is more important than ever. While we’re finally seeing promising signs — more listings, more contracts, and a stronger buyer presence — it’s still a delicate recovery. Sellers who price smartly are the ones who will secure strong offers and close with confidence.

So yes, it may be the best spring market we've had in years, but it’s still not the market to get greedy.

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Local Happenings & News

Compass says its Data Shows Benefits of 'Pre-Marketing' Listings

Compass is providing an early look at research into the impact of "pre-marketing" listings through the brokerage's Private Exclusives and/or Coming Soon channels.

Courtesy of Real Estate News

Easter Parade and Bonnet Festival

April 20, 2025

Every Easter from 10 AM to 4 PM, Fifth Avenue transforms into a vibrant spectacle as revelers don extravagant bonnets and festive attire for a tradition dating back to the 1870s. The best views are near St. Patrick’s Cathedral, but why just watch? Grab a bonnet and join the fun!

Click HERE to Learn More!

Macy's Flower Show

APRIL 27, 2025 - MAY 11, 2025

Macy’s 2025 Flower Show transforms imagination into a floral wonderland. Visitors will explore surreal gardens, drifting cloudscapes, and vibrant vistas, all bursting with dazzling installations and thousands of breathtaking blooms.

Click HERE to Learn More!

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The Monthly Update - March 2025

Quick Market Update & Note About Condo vs. Co-op

February saw a steady rise in contracts signed, with deals rising 37.4% month-over-month at the time of this writing. Inventory is also steadily gaining ground and is only 3.2% less than it was at this point last year. Despite interest rates' pesky ability to stick around 7%, buyers are still aggressively putting property under contract, and the anecdotal water cooler chatter is that plenty of buyers currently have accepted offers or are negotiating deals that are yet to hit the contract-signed market. As it turns out, many industry experts, including bankers, real estate attorneys and real estate brokers, expect this spring to be busy! They like to call this a “liquid market," meaning many properties and deals will be changing hands, but it remains to be seen if “price action“ will come into play. Will prices start to rise, finally, after staying relatively flat for the past 72 months? Only time will tell.

Condo vs. Co-op

The allure of owning a high-end property in New York City has always been a trophy for many affluent (and not as affluent) people who are drawn here. But these buyers have choices: They can either purchase a co-op or a condo. Recently, the appeal of owning upscale condominiums has taken flight, leaving luxury co-ops in the dust. 

In January 2024, one seller sold his Park Avenue co-op for $7.4 million, or nearly 60% less than the original $17.7 million asking price. This sale emphasizes the point that co-ops are staying stagnant by way of resale and falling behind condos in resellability. 

Not long ago, co-ops were considered the gold standard for New York City living. The idea of purchasing a co-op on the Upper East Side's Fifth, Park or Madison avenues attracted some of the wealthiest families around the world. Lately, however, many buyers have preferred high-end luxury condos, which are more of a “downtown" thing. They’ve also elected a lifestyle with fewer rules and more modern amenities. Buyers from all over have been less enamored with the stately, old-world charm of uptown co-ops and have instead gravitated towards more “hip” downtown living in contemporary new-construction glass towers.

And the numbers don’t lie: For properties over $10 million, condos saw a 45% growth rate from 2014 to 2024, while co-ops only went up only 16%. High-end downtown condos in areas like Tribeca, SoHo and the West Village are now seen as the pinnacle of luxury living. And we can’t forget Midtown's Billionaire's Row, where addresses like 432 Park and 220 Central Park South have seen exponential growth over the last decade, leaving “stuffy” co-ops behind. A lot of this shift has to do with the changing demographics. Younger and affluent buyers are choosing a different lifestyle and view co-ops as “antiquated” and “old school.” 

So, what does this mean for the future of co-ops? Well, some cooperative buildings are getting hip to the game by loosening their restrictions and adding amenities to remain competitive with their rivals. However, most are still sticking to their guns by requiring 50% down and 5 times the price in post-closing liquid assets, all while forbidding subletting. Plus, the majority of co-ops still require voluminous board packages plus an in-person interview, which, frankly, often just hinges on the buyer's personality. 

In my humble opinion, and as a co-op ownersomeone who sells in many co-ops, I find it very  frustrating that these buildings have not yet become leaner, “friendlier“ and better prepared for the 21st century and beyond. Only time will tell if co-ops start to become more competitive. Still, for now, particularly in the luxury market, co-ops are on a downward trajectory while condo popularity continues to rise.

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Local Happenings

Sarah Cahill:

The Future Is Female

March 8th, 2025

Join pianist Sarah Cahill for a six-hour marathon performance celebrating women composers from the Baroque era to today. From 2-8 PM, Cahill will perform over seventy compositions by female musicians, bringing to light brilliant works history has often overlooked.

Click HERE to learn more!

St. Patrick's Day Parade

March 17th, 2025

The celebration kicks off at 11am and continues until about 4:30pm. The parade route starts at 44th Street and travels up Fifth Avenue past the beautiful St. Patrick's Cathedral, ending at 79th Street.

Click HERE to learn more!

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Lifestyle Tips and Tricks

The History of Home Staging

Learn how staging evolved from placing furniture in select rooms to the high-stakes art form it is today.

Courtesy of U.S. News

8 Interior Design and Renovation Tips from Experts

Define what you want to achieve with the renovation, taking your lifestyle needs and budget realities into consideration.

Courtesy of U.S. News

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The Monthly Update - February 2025

January 2025 in Review

Last month, I found myself constantly checking my news app, captivated by the significant changes unfolding within the federal government. While there's still much to be resolved and the impact on Manhattan and Brooklyn's real estate markets remains uncertain, I can share insights from the first third of the first quarter of 2025.

As we entered January 2025, one of the standout observations was the inventory level. At the start of the month, Manhattan had approximately 5,000 units on the market, marking the lowest Q1 start since 2016. Since then, inventory has been gradually increasing, though it remains about 7% lower than this time last year. Many industry experts anticipate a rebound to normal levels by March, but the current low inventory is already influencing both sellers and buyers.

Open houses have seen a resurgence, with buyers actively attending—an almost post-COVID novelty! We've even witnessed a few bidding wars. For instance, a three-bedroom on East 9th Street sparked competitive offers, and a two-bedroom on East 71st Street, relisted for $100,000 above the previous broker's price, sold for an additional $20,000. These developments highlight increased buyer urgency, likely driven by the limited inventory.

I regularly monitor the 30-day pace of buyer demand, and as we wrapped up 2024, it was about 20% higher than the previous year. This indicates a significant uptick in inventory under contract. Although January is typically a slow period for new listings and contracts, the in-contract rate is still approximately 8% higher than last year. This suggests that buyers are returning to the market, continuing the momentum from strong Q3 and Q4 numbers. It will be interesting to see how this trend evolves as more inventory becomes available, offering buyers additional choices.

In January 2025, interest rates have remained steady around 6.5%, with a slight dip closer to 6% as I write this newsletter. The Federal Reserve is not expected to adjust rates until mid to late summer, having opted to maintain the status quo at the end of last month without further commentary. While the Fed's plans can shift monthly, industry professionals remain cautiously optimistic as we progress through Q1.

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Local Happenings

Hana House: AAPI Lunar New Year Market

February 1st

Celebrate the Year of the Snake at a festive market featuring AAPI vendors with traditional food, crafts, and live entertainment. Enjoy vibrant stalls, live music, and fun activities for all ages!

Click HERE to learn more!

NY Botanical Garden 2025 Orchid Show

February 15th

This year’s show transports you to Mexico, blending traditional and contemporary artistry inspired by the bold designs of architect Luis Barragán. Celebrate diverse ecosystems and cultures.

Click HERE to learn more!

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Listing Spotlight

105 E 35th Street - $5,200,000

421 West 22nd Street #1 - $3,500,000

57 Warren Street #7 - $2,250,000

310 West 56th street #5A - $975,000

3 Hanover Square - $800,000

45 West 54th Street #10A - $550,000

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Lifestyle Tips and Tricks

How to Stage Living Spaces When Selling Your Home

Potential homebuyers are looking for cozy living spaces where they can relax with family as well as entertain friends. Learn staging secrets that will make your living room, den or family room irresistible to buyers.

Courtesy of HGTV

7 Bathroom Design Trends to Watch in 2025

Consider these up-and-coming design trends if you're planning a bathroom makeover in 2025.

Courtesy of US News

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The Monthly Update - January 2025

A Glance Back And A Look Ahead

Happy New Year!

2024 started off much like 2022 and 2023 did — struggling with low transaction rates, mostly due to high mortgage interest rates. As we moved into spring, the weekly transactional rate never topped more than 240 units per week, when a typical spring market often reaches highs of 400 to 450 contract signings per week! However, last year's lower signed contract rates did remain steady throughout the year at about 200 contracts per week.

There was more trepidation than usual in our local markets leading up to the November elections. With a turbulent presidential election ahead, many anticipated a downturn in buyer activity. However, there was slight relief in August when interest rates briefly dropped to under 6%. The market then saw a steady increase in transactions through the end of the summer and deep into the fall market. As the presidential election came and went, interest rates hovered around 6% to 6.5%. At that time, many in the industry thought the real estate market would enter its typical fall slowdown into the holidays and the end of the year. However, transactional rates stayed strong compared to the past few seasons, and 2024's Q3 and Q4 saw a 30% to 35% increase in contract signings!

The luxury sector, the segment priced at $4 million and above, which many believe to be the bellwether for the rest of the market, recorded an 8.5% increase in listings going into contract compared to 2023. The upper echelon of the luxury market price at $10 million and above, often called the trophy listing sector, saw a 4% year-over-year increase in deals, with 278 contracts signed last year. As a matter of fact, 2024 ranked as the second-best year since 2006, when monitoring of the trophy listing segment began. Interestingly, the No. 1 year for trophy listings was 2021, the pandemic rebound year, when almost 400 trophy properties were listed and sold. Without question, the luxury market has been powered by huge gains in the stock market and the anticipation of a bump in bonuses this year. An interesting leading indicator of the luxury market can be found in the Federal Reserve data of 2020 when the total net worth of the top 1% in the U.S. was $30.3 trillion. By the end of Q2 of 2024, that number grew to $46.7 trillion, and the expectations for the elite 1% are even stronger for this year.

What can we expect in 2025? It's never an easy guess, but here it goes … Interest rates are not expected to go down next year, especially with the Fed indicating that prime rate cuts will be few and far between. However, with the expectation of the 1% getting wildly richer this year, mostly due to deregulation in the stock markets, there should be stronger activity over the next couple of years. Still, only time will tell how things play out in the Manhattan and Brooklyn 2025 sales markets.

For 2024, homes were still trading at around 2018 to 2019 price levels. There has been no real increase in overall property value since then. Of course, there are exceptions, and the luxury market did see a price increase of about 4% on average in 2024 compared to 2023. However, the asking price for standard New York City properties has remained flat. What we're looking for in 2025 is an increase in transaction rate, first and foremost. An increase in the volume of property going under contract will help the overall real estate market moving forward. Only then can we talk about how the increased volume might affect pricing.

Overall supply is another interesting facet to look at for the 2025 New York City real estate market. At the end of 2024, listing supply inventory was trending down, as it typically does towards the end of the year. But last year, particularly after August, there was less inventory than usual by about 500 to 700 units, depending on which month we look at. At the time of this article, there were 5,371 listings on the market. There's not going to be an increase in overall inventory until mid to late January. By the middle of the spring season, we should see inventory surpass 7,000 units. We have a long way to go before we reach that amount, but this is a good indicator of the health of the 2025 market to watch in Q1.

Other things to watch for in 2025 include the stock market, interest rates, overall listing supply and the rate at which buyers put property into contract. Those four leading indicators will determine the direction of the 2025 market, and we should see early in the year what direction the 2025 market will lead us. Other factors remain, of course, but I feel if the stock market is strong, interest rates continue to hover around 6% to 6.5%, and listing supply increases to a healthy amount, the Brooklyn and Manhattan markets will remain strong through the first half of 2025!

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Local Happenings

NYC Restaurant Week

January 21 - February 9 2025

Savor the flavors of NYC during Restaurant Week! Discover exclusive lunch and dinner deals at hundreds of top restaurants across all five boroughs. Indulge in curated 2-course lunches, 3-course dinners, or both, and enjoy incredible cuisine at unbeatable prices.

Click HERE for more details!

Compass to Acquire Christie's International Real Estate

The $444 million deal brings the 8th-largest brokerage firm into the Compass fold and represents the brokerage giant’s first major move into the global market.

Courtesy of Real Estate News

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The Monthly Update - December 2024

Post-Election — NYC Real Estate Update

Leading up to the election, the New York City real estate market saw a nice little uptick in buyer contract signings. That was mostly because interest rates dropped to less than 6% (even for just a few weeks) in late August and early September. Even with the election at our doorstep, the Fall 2024 market enjoyed about a 25% increase in contract-signed activity compared to the year before. However, there was still a cloud over the market as everyone waited to see what the post-election period in New York City real estate would look like, and here it is! 

It’s still kind of busy! As of the time of this newsletter, the weekly contract signed rate ticked up 2%, and buyer activity remains robust. There were two leading indicators to consider prior to the election: One was interest rates, and the other was the election itself. Now that one of those two things is behind us, buyers seem to have at least some sort of handle on what’s going to happen over the next four years with this new administration. Many expect deregulation in the financial markets and a soaring stock market. Many predictions regarding interest rates indicate that they should hover around the 6% mark, drifting slightly up or down depending on other economic conditions. However, with one leading indicator/obstruction out of the way, purchasers seem to have a clearer view of what’s to come, giving them confidence in purchasing real estate once again. How that pans out in the spring remains to be seen. Meanwhile, the in-contract inventory is staying strong as of this Thanksgiving week. Contracts signed marked their third-highest week of the entire year, which nods to buyer sentiment in today’s market. 

While buyers slowly gained confidence, they didn’t have many units to choose from. The fall market never met its historical norm for inventory. Currently, overall city inventory levels remain about 500 to 700 units short compared to a typical fall market. As a result, the inventory supply this winter could see some record lows, and it remains to be seen how supply will bounce back for this spring. Inventory is an important factor in the health of the real estate market, as buyers need choices. The more options they have, the more they come out into the market to purchase. Consequently, many industry professionals are keeping their eye on the overall inventory for this spring, hoping for a strong bounce back. 

Another interesting segment for consideration in the 2025 market is the luxury sector. Many believe the luxury market of homes priced at $4 million and above is expected to be extremely strong next year. The week after the election saw Manhattan’s second-highest luxury contract-signed volume in the borough’s recorded history. The weekly volume for luxury real estate reached $364,685,000, just below the week of December 20-26, 2021, when the total was $368,532,000 -- the all-time high. So, many are keeping their eyes on the luxury sector and how this incoming administration could affect the ultra-rich. 

Overall, there seems to be some sort of light at the end of the tunnel after a two-year slowdown in the Manhattan and Brooklyn real estate markets, which began when interest rates began climbing in the summer of 2022.

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Local Happenings

Rockefeller Center Christmas Tree Lighting

DEC 4 - MID JAN 2025

This year's Rockefeller Center Christmas Tree will come from Massachusetts, the first tree to hail from the state since 1959! The 2024 Rockefeller Tree will be lit daily from 5am to midnight. On Christmas Eve the tree will be lit for 24 hours and on New Year's Eve it will be lit from 5am-9pm. The Tree will be on view through mid-January.

Click HERE to learn more!

Celebrate Hanukkah with Jazzukkah at Eldridge Street

DEC 25

Enjoy a festive, jazz-infused spin on Chanukah classics with The Jazzukkah Project, followed by a special candle-lighting ceremony featuring historic menorahs. Perfect for the whole family, this musical holiday celebration on Christmas Day marks the first night of Chanukah.

Click HERE to learn more!

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The Monthly Update - November 2024

What’s Next?

After a rebound of sorts this fall, the city’s contract-signed numbers are about 25% higher than this time last year. However, as of late, there seems to be a slight wait-and-see approach taken by buyers (and sellers), partly due to interest rate fluctuations and next week’s presidential election. That said, the 2024 fall season as a whole has been much more robust than the past couple of years. Another contributor is the lower-than-normal inventory levels. Overall, city inventory did not exceed 7,000 homes this year. At the time of this article, there are 6,856 listings on the market ready to be sold. Historically, most fall markets see an increase in inventory well over 7,500 total listings. With the low inventory and elevated contract-signed rates, the city’s real estate foot soldiers — the agents, brokers and salespersons representing buyers and sellers — could definitely feel the increase in activity. 

However, the increased activity didn’t create a true seller’s market! The uptick did not give sellers license to start raising prices closer to 2015-2016 levels, which was the last time homeowners enjoyed a full-fledged seller’s market. Today’s busier-than-usual conditions didn’t even eclipse pricing seen during the COVID rebound markets of 2021. Instead, this year's fall market experienced a slight uptick in activity. Nothing more. However, because it’s been so sluggish for the last 24 months, any increase in activity felt like a breath of fresh air, and all of us felt far busier than we have been since interest rates rose in the summer of 2022. 

The swell in activity was felt primarily in the lower price end of the market, generally at about $2 million and below. That’s no surprise, as buyers in that sector tend to be much more cognizant of and reliant on interest rates. As a result, it’s no surprise the decrease in interest rates coupled with strong pent-up buyer demand created an uptick in buyer movement. And when interest rates, for a brief moment, dipped below 6%, buyers came back to the marketplace and put property under contract. 

But what’s in store? That is the question moving forward, regardless of who takes office, Republicans or Democrats. The city’s real estate market needs lower interest rates to start fueling the very evident amount of pent-up buyer demand. Sellers also need to participate in this comeback as buyers need inventory to choose from in order to start putting more property into contract and create a more sustainable recovery. All this needs to happen before there’s any talk of a “seller’s market." Meanwhile, the recent uptick is a welcome sight for many brokers who’ve been pounding the pavement with their buyers or laboriously selling units that took months, if not years, to sell. 

Looking ahead, the economy remains strong enough, but only time will tell if that continues under the newly elected administration. Interest rates should start to go down further, but only time will tell if the Fed agrees with lowering the interbank rate and passing those savings onto consumers in the way of reduced interest rates across the board. 

So, What’s Next? Only time will tell!

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Local Happenings

New York City Marathon 2024

NOVEMBER 3, 2024

Cheer on your family and friends at this year's NYC Marathon! Thousands of runners from all over the world gather in the big apple, annually, to compete in a 26.2-mile race that spans across all five boroughs. It’s an impressive all-day event that you don't want to miss!

Click HERE to learn more!

Luna Luna: Forgotten Fantasy

NOV 20 – JAN 5, 2025

Hold on! There's an arsty carnival displaying authentic installation pieces by some of the world's most influential artists from the 20th century? Sign me up! What has been described as “The art event of the year”, by The Independent, Luna Luna was created on the idea of the world's first art amusement park.

Click HERE to learn more!

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The Monthly Update - October 2024

Is There Relief In Sight?

Last month, real estate talk in the Manhattan and Brooklyn markets centered around interest rates and whether they'd fall soon. That all came to fruition when the Fed met last month and finally lowered the interbank rate by 50 basis points — the first rate cut since March 2020! 

The assumption has been that buyer pent-up demand has been escalating since rates started rising in Summer 2022, with the expectation that the Fed lowering rates would bring buyers back. So, has that happened??? The foot soldiers of the real estate industry — the real estate agents who pound the pavement every day working on behalf of their clients to get the best price possible — are, in fact, seeing an uptick in volume and overall transaction rates since the Sept. 18 rate cut. Looking ahead to October, is there any anecdotal evidence or water cooler chatter about busier open houses or more buyer inquiries, at the very least? The short answer is yes! 

The number of listings that went into contract in September was up, driven mainly by mortgage interest rates that declined throughout the month, including after the Fed's 50-point reduction. Twenty-five percent more contracts were signed in Sept. 2024 than in Sept. 2023. That's great news since September is often one of the slowest months for listings to go into contract (contrary to popular belief), while October is generally the busiest month of the fall season for signed contracts. 

Put another way, September is a “listing month“ in New York City, not a “signed contract” month. Historically, there's a spike in new listings after Labor Day, which starts to taper off later in the month. However, this September, the number of new listings was lower than last year. Buyers coming back into the market with zest and vigor because of lower rates, but with less inventory to choose from — this is the ideal seller's market recipe sellers have been waiting for over two years! 

Don’t get me wrong, there are still hurdles to overcome. Real estate generally doesn't turn around overnight, and we still have the election and other geo-political situations to navigate through the rest of 2024. The challenges that might prevent a strong 2025 spring season are not completely clear at present. I’m not making a call that spring will see the return of a full-fledged seller's market — there are just too many unknown factors at play right now. That said, it is shaping up to be one of the stronger spring seasons the market has seen in quite some time. Maybe even going back to 2015-2016, the last time sellers enjoyed a brisk market in their favor.

But only time will tell. Inventory is still quite low compared to historical norms, and signed contract numbers are up YOY. If these two things continue on the same path, and the Fed continues to lower rates, as they are slated to do a few more times this year, things could be looking up for the New York City market – finally!

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News & Local Happenings

NYC Food & Wine Festival

OCTOBER 17 - 20, 2024

It's that time of the year! Check out four days and over 80 events for this year's NYC WFF hosted by Food Network. The foodie extravaganza consists of city-wide tastings, limited time offers, pier parties and more! Click HERE to learn more!

Pickle For P.I.N.K.

OCTOBER 23, 2024

The proceeds will support breast cancer research through Breast Cancer Research Foundation (BCRF), the highest rated breast cancer organization in the US. Looking to play?

Click HERE to register.

Can't make it but would like to donate? Click HERE to donate.

NYC Village Halloween Parade

OCTOBER 31, 2024

It's back and spookier than ever! Head downtown to check out this year's iconic parade, stretching along 6th Avenue from King Street to 15th Street. Expect to see more than 50,000 ghouls, zombies, witches, robots, Jedis, monsters and more to take the streets! Click HERE to learn more!

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Listing Spotlight

50 Gramercy Park N. #15AB - $4,000,000

10 W. 15th St. #1027/28 - $2,795,000

110 Riverside Dr. #15C - $2,600,000

200 E. 66th St. #D1701 - $2,375,000

536 E. 12th St. #4R - $1,548,000

55 E. 72nd St. #2N - $1,395,000

300 W. 145th St. #2C - $835,000

345 E. 73rd St. #3A - $790,000

234 E. 35th St. #3 - $650,000

30 E. 37th St. #6G - $599,000

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The Monthly Update - September 2024

 Will the Ice Thaw this Fall? 

With all the talk about the Fed potentially lowering interest rates this fall, the Manhattan real estate market (and the Brooklyn market, too) has been abuzz with hope. Since the small adjustment in mortgage rates around the middle of August, experts have been wondering what could happen if full-fledged prime rate decreases start rolling out at the Fed's next meeting on Sept. 17. Did the slight downtick in interest rates translate to actual sales activity last month? And will the thawing of mortgage interest rates produce an influx of buyer interest in the New York City real estate market soon? Let's dive in.

First, let's look at how the market is really doing in terms of weekly signed contracts. For most of the spring and summer, the contract rate was hovering around 200 properties weekly. This rate stayed steady through the hottest part of the spring market and the lowest and slowest weeks of the summer market. Slow and steady was and is the motto of the 2024 real estate market. For example, back in spring — typically the hottest time of the entire year with the highest volume of listings going into contract — there was only a max of 235 contracts signed per week. Compare that to the 350 to 400 units that would usually go into contract in the strongest weeks of a normal year's spring market. But not this year. Because of the under-performing spring period, many in the industry thought that activity would get worse and worse throughout the summer. However, buyers continued to put property into contract at that 200 apartments a week rate. Slow and steady. And even in the last week of August, considered one of the slower months of the year, buyers still put close to 200 apartments under contract yet again! 

Did we see an increase in buyer activity towards the end of August because of interest rates? If so, will that continue to grow into a late "spring market" in September? Well, if the Fed does decide to cut rates this month, I can tell you firsthand — and in concert with what most other salespeople, brokers and mortgage lenders are feeling — that there is a truly massive amount of pent-up buyer demand in the marketplace. Those buyers are simply longing for the days of interest rates that start with the number 5. So it stands to reason that they would snap back into the market like a rubber band and start taking property off the market at a higher clip than 200 listings per week! 

If that happens, the next question is always, how will that affect pricing? It's my belief that we need the transaction rate, generally called the liquidity rate, to pick up before we can have any conversation around raising sale prices or asking prices. If we can get a nice month or two of stronger transaction rates, meaning how much property goes into contract on a weekly basis and how quickly, and we push through winter and into next spring with those above-average weekly in-contract numbers, I could seriously see prices starting to come back in 2025.

Meanwhile, we wait and see if the Fed will help the thawing of the market paralysis to get buyers out there signing contracts this September and October, before the election. With current forecasters anticipating three Fed rate cuts by the end of the year, we are all very hopeful that they will! 

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Listing Spotlight

204 Forsyth St. #5N

COMING SOON

200 E. 66th St. #D1701

COMING SOON

179 Crown Street

$2,395,000

57 Warren St. #7

COMING SOON

18 W. 48th St. #30D

COMING SOON

18 W. 48th St. #12E

$1,195,000

300 W. 145th St. #2C

$835,000

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The Monthly Update - August 2024

Three Intangible Assets to Look for When Buying in New York City

There are many reasons why people buy property in New York City. A sense of accomplishment, investment, and security are just a few. The truth is, it can take months to find the right apartment in NYC. And, after viewing 10, 20, sometimes 50 homes, these multi-room boxes tend to all look the same. The key is looking beyond the cosmetic updates and designer finishes to see the property's true value. 

Here are the three intangible assets I always prioritize when evaluating and purchasing a home.

Apartment Placement:

Where the apartment is located in the building is critically important. Is it on the ground floor? The top floor of the six-story walkup? Is it a corner unit or smack in the middle of the hallway with apartments on either side? When choosing an apartment, I always look for corner units which can have windows on two or even three sides. I even bought a unit with all four exposures: north, east, south and west! This gives the unit a very different appeal from most other listings on the market. A premium apartment placement within the building is a positive attribute that will likely never change and will appeal to buyers when you’re ready to sell. When you have the opportunity to buy a corner unit, you’ll always have multiple views and better natural light, which will set your listing apart when the time comes to sell. Plus, corner apartments typically share fewer common walls with other units (your neighbors) in the building. You’ll have a little more privacy and autonomy when buying at the end of the hallway or the corner of the building.

Layout:

The layout or the floor plan is an extremely important consideration when buying a home. It’s true that you may be able to add or remove rooms within the space, but if you don’t want to rack up major renovation costs for moving kitchens, baths and bedrooms, having an optimal layout from the start is imperative. For example, apartments that have bedrooms on either side of common areas, such as living rooms, dining rooms, and kitchens, have a different feel from other cookie-cutter units. The split-bedroom layout also gives more privacy for bedrooms that don't share common walls. If you are buying for a multi-person household, consider looking for layouts where bedrooms are separated by living space, with the primary bedroom away from the secondary bedrooms. This will be a significant asset when you’re ready to sell and provide a more enjoyable living experience while you own the property. 

View:

This can be a challenging intangible to evaluate in New York City, where you never know when the next pencil skyscraper is going to take root and grow right in front of your own building, robbing you of your iconic view in the process. There are resources that can help you determine which nearby buildings could be earmarked for demolition. Look for homes where the view looks over an established, larger co-op or condo or newer rental buildings. Older low- or mid-rise buildings are often targeted for redevelopment. Buying in or around a Landmarks Preservation Commission designated historic district or landmarked building can also protect your views. You can access the LPC map [link here]. If your potential new apartment faces a historic district block or individually landmarked building, chances are your view will be protected in perpetuity. When purchasing an apartment, you can ask the title company to perform what’s called a “sightline search,“ which costs a little more but will help you get an idea of which surrounding buildings have air rights left, which are consolidating air rights and which are prime for development. While the city skyline is and will always be changing, getting a better idea of what is going on with the surrounding air rights can help protect that view you fell in love with on your first visit to the property. 

Unit placement, general layout, and views are the three intangibles you should prioritize to keep your long-term investment holding (or increasing) its value for the duration of your ownership, even as the city grows. Remember, everything inside can be cosmetically changed, but placement, floor plan and open views, particularly protected ones, will become valuable assets during resale.

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Local Happenings:

SUMMER STREETS

AUGUST 3, 10 and 17, 2024

Summer Streets is the epic Manhattan tradition that opens up miles of thoroughfares for walkers, runners, bicyclists and people-watchers of all ages.

Learn More

THE U.S. OPEN

AUG 19 - SEPT 8, 2024

The U.S. Open brings all the stars of the tennis world to Queens for the last major tournament of the season.

Learn More

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Lifestyle Tips and Tricks:

Technicolor Switch

All neutral color palettes might be out - or at least taking a long summer vacation...

Courtesy of Realtor.com

The Most Common Questions Buyers Ask Real Estate Brokers

A real estate purchase brings up a plethora of questions. The answers are often nuanced.

U.S. News

Least Difficult Areas in the US to Buy a Home

Ranked by cost, competition, scarcity, and economic instability.

Courtesy of CNBC

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Listing Spotlight: Just 4 of our 34 listings!

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The Monthly Update - July 2024

What happened to Manhattan’s 2024 Spring Market? 

Well, there was a spring market. It just didn’t rise to the expectations of historical norms. There are many thoughts on why the 2024 spring market was so lethargic, but the only real reason is interest rates. Rates are usually the first topic of conversation when describing the 2024 Manhattan spring sales market. 

Looking at the broader picture first, interest rates at the beginning of the season dipped to around 6.4% from their late Fall 2023 highs of close to 8%. When the rates fell to about 6.4%, it was like a breath of fresh air, and buyers became active again. They especially took advantage of dips in listing prices for any inventory leftover from Fall 2023. Many in the industry believed that if rates continued to decline into the spring of this year, the market would rebound. However, that’s not what happened. Rates steadily climbed to 7% and even 7.5%, causing the spring season to lose what few transactions it had. 

To put the effect of higher rates on the 2024 spring market into better perspective, if you look back at historical data, you’ll see that during any 30-day window during past spring seasons, about 1,100 properties go into contract. We’re talking about condos, co-ops, townhouses, and even new development sales – more than 1,000 homes will go under contract every 30 days. This year, however, the 30-day contract signed meter never really rose above 950, and most of the time, it was hovering around 930 to 935 contracts every 30 days. 

So, what does that look like on a weekly basis? Historically, there are about 350 to 400 homes going into contract each week. During the spring season, between April 1 and June 15, more properties change hands, go into contract and sell between those months than during any other time of the year. However, in 2024, there was no such bump in activity. This year, the weekly in-contract numbers stayed between 200 to 230. There was no significant increase or decrease: The figure just stood in the low 200s all spring long.

Many ask about the supply. Maybe it was the lack of choices that buyers had that caused the contracts to slump compared to past spring markets. Was there just not enough product to choose from, causing purchasers to get disinterested and disheartened, and making them pull back? No, that’s not the case. Overall, listing supply held steady, and it reached its pinnacle, as it usually does, in mid-June, with around 7,400 to 7,450 total listings on the market. Historically, that’s about what the market sees every spring season.

Inventory and overall listing supply were there for buyers to choose from. Sellers were putting their property on the market, looking to unload and sell their listings. But the inventory simply fell on deaf ears. Many buyers either pulled back further or did not move forward with purchases to the tune of about 20-30% lower than Spring 2023. And a lot of that was just psychological, frankly. I say psychological because over 60% of all transactions in Manhattan last year were cash deals, meaning they are completely unaffected by interest rates. Yet, somehow, that didn’t matter. It's psychological. 

In a high-interest-rate market,  all-cash buyers are waiting, just like buyers who are financing and looking for opportunity. All buyers were and are looking for property values to fall. And there were plenty of price adjustments this spring, anywhere from 3% to 10% of the original asking prices. Listings that did sell in March and April were going into contract at roughly 4% under the last listing price. There were built-in discounts, but in many cases, it didn’t seem to matter.

Buyers still seem to be holding back waiting for interest rates to get closer to 6%. All spring long, it felt like the entire market was waiting for some sort of catalyst or spark that never happened. The catalyst was interest rates. Compass CEO Robert Reffkin spoke to CNBC and said that if interest rates got to 6% or the “magical number of 5.99%,” he would expect a sudden surge of buyer activity at all price categories.

So what happens next? Will interest rates dip to under 6% in 2024? While no one knows for sure, many predict there will be no substantial change in rates until the spring of 2025. What does that mean for buyers this summer? It means opportunity! If there aren't very many buyers out there this summer because of interest rates, and there are sellers who remain on the market with their unsold spring inventory, that means they likely have to sell. Many Manhattan sellers will take the property off the market during the dog days of summer, as they know it’s the slow season. Then, they’ll re-introduce the property in the fall or next spring. But those who stay in the market, those are the sellers who need to sell. And those properties provide an opportunity for buyers to purchase despite the interest rate levels, because the discount off the listing price could potentially be better than a dip in interest rates. 

There’s an old saying we’ve heard plenty since interest rates started creeping up over two years ago: “Marry the apartment (price) and date the rate.” That is the mantra and mindset buyers need to adhere to if they’re going to purchase this summer. There will be lower inventory and persistent interest rates, but great opportunities.

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Hoffman Team in the News

Record Setting Sale!

Congradulations to The Hoffman Team's Darya Goldstein who just closed on a $81.5M sale at 220 Central Park South. The sale is the 2nd highest transaction this year and the 12th most expensive in the City's history.

Ranked #18

The Hoffman Team was ranked as one of the top 1,000 teams nationwide and #18 in New York State. We are beyond grateful for the wonderful clients we worked with in 2023. Thanks to all of you!

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Local Happenings

MACY'S 4TH OF JULY FIREWORKS SHOW 2024

Thursday, July 4, 2024

Red-white-and-blue, everything. New York City becomes alive every year with multiple firework shows across the city, but what is known as NYC's most impressive pyrotechnic show is the Macy's Fireworks, where 60,000 shells are launched off of barges into the East river, exploding in all shapes, colors and sizes! Click HERE to learn more!

FIAF'S BASTILLE DAY 2024 CELEBRATION

Sunday, July 14, 2024

Every year, Bastille Day is celebrated across the city by New Yorkers on July 14th. From outdoor parties, feasting on baquettes, cheese and flowing wine, and a range of live performances, the city becomes alive to celebate the historic storming of the Bastille. For all the Fracophiles who want to take part, click the link below to learn more! Click HERE to learn more!

MoMA PS1's WARM UP 2024

Fridays, Jul 12 - Aug 16, 2024

The renowned art institute's summer music series is back for it's 26th annual season! Head to Long Island City to MoMA PS1 to catch a glimpse of innovative artsist from all over the world maijng an echo in the scene of electronic music, both new and historic. For all the music lovers, this is an event series you don't want to miss! Click HERE to learn more!

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The Monthly Update - June 2024

Cooperatives and Condominiums and Rentals, Oh My!

To say New York City has a real estate landscape unlike any other in the country is not an exaggeration. First of all, roughly 60% of the city’s housing units happen to be rentals. For comparison, the national average is the exact opposite, with nearly 65% of all U.S. homes owner-occupied. 

Other than condops (let’s not get into it) and townhouses (which generally start around $4 million), there are two primary types of purchased habitats in New York: the cooperative and the condominium.

Let’s start with the cooperative, or co-ops, for short. Before 1980, close to 90% of all buildings were rentals. In the early 1980s, the co-op conversion craze started when sponsors or developers would convert rental buildings to co-ops. At the time, the city’s economy was in shambles, mortgage rates frequently topped 15% and rental laws capped income for building owners. Co-op conversions were an easy way for building owners to cash out quickly.

Instead of owning the property, with a co-op property, you lease shares of a corporation for a 99-year period. This arrangement allowed shareholders to screen and approve other potential shareholders of their private corporation, which happened to be a residential apartment building, essentially skirting Fair Housing laws in the process. But that’s a story for another time. Today, the majority — about 65% — of purchased (non-rental) buildings in New York City are cooperatives. 

The co-op sales process starts just like any other property: You put it on the market, set a price, get offers, negotiate and accept an offer. However, unlike the rest of the country, here in New York City, the deal then goes to real estate attorneys who negotiate the contract before you sign. But here’s where it gets interesting: The buyers must also fill out a co-op board application — a minor thesis on their personal and financial wherewithal. The board package is submitted to the co-ops managing agent, who reviews it to make sure it’s filled out correctly, and then it goes to the board for their approval. If the board application passes muster, the buyer goes to a board interview. If the board denies the buyer at either stage, the deal is done. It’s over. The third-party board has killed the deal and ended what is often a two-month process! This makes Manhattan extremely unique from the rest of the country because the majority of the property that you can purchase here is subject to approval by a separate board based on your finances, generally. 

Meanwhile, the condominium process is a bit more straightforward. Roughly 35% of the purchase market consists of real property in the form of condominiums. In the condominium purchase process, there is no pass/fail. You own the four walls and have a separate tax lot for the property that you're purchasing. There is a board application, but it’s called a sales application, which is just as comprehensive as the co-op board application, but there is no pass or fail. It’s just a waiver right of first refusal that the condo board has to issue. If they don’t seem to like the buyer, the board has the right to purchase the property for the same price and terms that are on the contract of sale, and the prospective buyers are just out of luck! But, after 22 years of selling property in New York City, I’ve only seen this happen once. It rarely happens because condo buildings generally cannot afford the average sale price in New York City of $1.3 million for a one-bedroom.

If you’re looking to purchase in New York City, getting a strong real estate agent to help you navigate these different types of purchase structures is extremely important. Making sure that you can pass a co-op board even before you start looking at a property is absolutely critical. If you are looking to buy in New York City or have any questions about the buying or selling process, please reach out. We’d love to help.

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Local Happenings

NYC Pride 2024

JUNE 1 - 30, 2024

New York City celebrates Pride every June by bringing millions together to celebrate and advocate for equality. Rainbow-clad activists and allies will take to the streets in support of this year's theme, “Reflect. Empower. Unite”. See below to learn more about this year's NYC Pride events.

Learn More

Tribeca Film Festival

JUNE 5 - 16, 2024

It's back and better than ever! Did someone say "De Niro Con"? Yes, that's right and there's even more! Explore a wide range of festivities at this year's Tribeca Film Festival. From exclusive galas, short film screenings, celebrity panels, participant voting, to exclusive music lounge dance parties, this is the experience for all the film buffs!

Learn More

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Lifestyle Tips and Tricks

Design Choices Sellers Might Want to Rethink

Social media causes a lot of hype, but trends change frequently and could hurt resales. Sellers are wise to play it safe with timeless simplicity.

Courtesy of NAR

6 Spring 2024 Tips for Home Buyers and Sellers

The housing market is in a strange place this spring....

Courtesy of Forbes

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The Monthly Update - May 2024

Pockets of Interest, Areas of Hesitation 

The Manhattan real estate market is acting funny. While pockets of strong buyer interest are definitely driving multiple bids on some properties, other listings are languishing. Spring 2024 is being called a sideways market by many at this point.

Spring inventory this year is similar to years past. There are currently about 7,100 listings on the market in Manhattan. In a typical spring, we’ll see approximately 7,500 listings by mid-June.   So, there’s no issue with supply. The problem seems to be with demand. But what makes this market so intriguing is the evidence of strong buyer interest. Depending on the property, the location, and, above all,  the price, some listings are getting into contract in 30 days or less with multiple bids. However, buyers are still generally moving through bidding wars with their hands guarding their wallets. Yes, we’ve seen some multiple-bid scenarios, but not many over-asking prices. Listings drawing the most attention have that special “something,” including an attractive price. Even those homes seeing a massive response are taking 45-60 days for the seller and a buyer to settle on price when it would only take a week in a typical spring market!  

In-contract listing activity is forming a zig-zagging line, with one week hot and the next week not. Typically, we’d observe close to 400 units going into contract every week during spring. But this year, that figure has been generally hovering around 200 to 230 listings per week. That could be an issue come this summer.

Many blame the Fed and the talk of little or no interest rate reductions. Some say it’s the elections that are ramping up. Whatever the reason, the fact remains that it’s shaping up to be a listing-heavy market, which will put a strain on sellers and pricing. However, New York City sellers have been resistant in the past to lower prices as many don’t actually need to sell. They would like to sell, if they get their bid, but many have the wherewithal to stay in place until the market improves, which can create a gridlock or standoff between sellers and buyers.

I think things will open up later this spring, and buyers will still come to the sales table as the rental market ramps up and rents increase. If buyers are not at the closing table, they’re signing leases. And when they sign leases in great numbers, it could make for a reverse flow back to the sales market, particularly if interest rates start to inch down later this spring/summer. As this situation unfolds, there are a lot of good opportunities for buyers to hit bids today if they are so inclined.

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Local Happenings

Whitney Biennial 2024

MAY 1 - AUGUST 11, 2024

Yes, it's that time again! The two-year wait is over. Head to the Meatpacking District to experience the 81st edition and longest running contemporary art exhibition in the United States, showcasing some of the newest, coolest and most provocative art in the world. For all you art lovers, this event is one you don't want to miss!

Learn More

Japan Parade 2024

MAY 11, 2024

This year marks the third annual Japan Parade in New York City! Catch a glimpse of the action starting from 81st Street down Central Park West to 67th Street. Spectators can also experience the lively Street Fair portion of the event on West 72nd Street off of Central Park West. It's going to be a blast!

Learn More

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Lifestyle Tips and Tricks

80% of Households are Spring Cleaning

Eighty percent of U.S. households are engaging in spring cleaning this year, according to the American Cleaning Institute...

Courtesy of Forbes

Architectural Digest Releases 2024 Outdoor Forecast

The pandemic single-handedly impacted how we live in our homes both indoors and outdoors. While outdoor spaces were hardly an afterthought at the time—in recent years, homeowners have been more focused on how to elevate...

Courtesy of Forbes

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The Monthly Update - April 2024

New York City: Q1 Real Estate Roundup

Three Topics, One Quarter

Contract Signed Activity, Overall Inventory/Supply:

After interest rates came down at the end of 2023, the first two months of Q1 2024 saw a sizable pickup in buyers putting property under contract. With inventory tight because the spring inventory push was still on the horizon, January and February felt more in favor of sellers than buyers. However, as interest rates started to inch up, by the end of February, there was a noticeable pullback by purchasers. Contract signing activity was actually negative during the first two weeks in March. However, as we approach the official start of the spring market (today!), we’re seeing purchasers come back to the marketplace despite interest rates hovering just under 7%. The end of the first quarter of 2024 saw overall inventory reach roughly 6,500 total available listings, which is on par with most previous “normal” years. Historical data also hints at what we can expect going forward — about 7,600 listings by about the middle of June — giving buyers plenty of options and contributing to a more balanced market.

The NAR Settlement and Lawsuits:

Many have read about the changes to commission structures, pending the National Association of Realtors lawsuit settlement. New York City is not under NAR jurisdiction. Most city agents (if not all) are not part of the National Association of Realtors (NAR). The Real Estate Board of New York is our local volunteer governing body, and all of the major firms and most smaller firms are part of REBNY, which has been active in getting ahead of these rulings. Most New York City brokerages have amended their listing agreements to lay out the commission structure so sellers can better understand how the commission structure is paid out and have more options on choosing how to pay out commissions, if they decide to pay them at all. As a New York City real estate agent for the past 22 years, I have to say that commissions have always been a negotiated item, like everything in real estate. Everything is negotiable! Price, commission, closing date, closing costs — you can even negotiate furniture in the apartment! So, the settlement may have far-reaching changes on a national level, but it will be interesting to see how it may or may not affect the New York City market, as the National Association of Realtors never had jurisdiction here.

Looking Ahead:

As the spring market gets underway, we are seeing an increase in overall listing supply and buyer activity, as we do every spring season. We’re not observing a record-setting pace this year so far, but we are seeing a normal flow and cadence, which is refreshing with all the changes that are happening around us. Real estate in Manhattan and Brooklyn has always been a reliable investment with no real swings and angulations up or down. It’s a steady ship that can give many homebuyers and homeowners a sense of stability. And with the presidential election on the horizon, it looks like we’ll see most of the activity in Q2 and the beginning of Q3, with a wildcard for the last four months of the year. Overall production for 2024 should be on par with most normal years once we close out the year in December. 

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COMPASS in the News

Compass is #1!

We are pleased to share that – for the third year in a row – as of the end of 2023, Compass remains the LARGEST brokerage in the United States in terms of closed sales volume (RealTrends 3/8/24).

Almost anywhere a buyer is considering moving, Compass has highly talented, high-integrity, well-respected and hardworking agent to refer you to.

We are proud to be a part of the largest brokerage in the U.S. – where we can best support YOU!

Powered by the Compass network and technology, we have access to the top agents nationwide to help you with all of your real estate needs.

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Local Happenings

The Orchid Show: Natural Heritage

NOW - SUNDAY, APRIL 23RD

Acclaimed artist Lily Kwong, the designer for The Orchid Show’s 20th year, presents a meditative and captivating design inspired by her ancestral connections to the natural world. Don’t miss this chance to be immersed in a mesmerizing array of orchids and to feel enwrapped in this one-of-a-kind experience at the New York Botanical Garden.

More Details

The Easter Bonnet Parade & Festival

SUNDAY, APRIL 9TH

The Easter Bonnet Parade & Festival is all about the hats—lavishly decorated, from the exquisite to the outlandish. Anyone is welcome to join, just show up near St. Patrick's Cathedral at 10am on Easter Sunday to watch or saunter with the group up Fifth Avenue.

More Details

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Lifestyle Tips and Tricks

30+ Best Kitchen Color Ideas

Grab your paintbrush and get ready to give a fresh new look to your kitchen walls and cabinets.

Courtesy of Country Living

Spring Cleaning Checklist

The Ultimate Guide to a Tidier Home. Spring cleaning will be easier with our checklist that covers your house from top to bottom.

Courtesy of Better Homes & Gardens

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The Monthly Update - March 2024

Renting vs. Buying (Post-COVID Edition)

It’s been debated many times before, but now that the New York City real estate market has seemingly turned a corner with a resurgence of buyers back into the real estate marketplace, it brings up the classic debate: What’s better, renting or buying?

The historical data indeed shows a clear trend of real estate appreciation over time, despite occasional downturns, such as the financial crisis of 2007/2008. During another flashpoint, the COVID crisis, the overall market chopped roughly 10% from prices and is still clawing its way back despite sky-high transaction rates during the initial stages of the pandemic. And the current strong buyer push hasn’t really moved the needle for pricing. That said, the correlation between inflation and real estate appreciation is often evident, as real estate tends to be a hedge against inflation due to its tangible nature and value as an asset.

It's understandable that some buyers may hesitate or attempt to time the market, especially in environments with tight inventory like today's landscape. But despite tight inventory, the long-term play to purchase real estate always seems to pay off if you treat real estate like long-term stocks. And waiting rarely pays off. Real estate has consistently appreciated over time, and trying to "get a deal" by waiting for prices to drop significantly can often result in missed opportunities.
Today is that day when prices are still diminished and recovering from COVID, and interest rates have finally dipped into more “normal” and affordable numbers. In short, it’s a great time to buy New York City real estate. Particularly when compared to the cost of a spring rental market, when fair market rates will probably jump anywhere from 5 to 20%. If you can lock in your purchase in the next four to six weeks, you’ll be a very happy seller in five to seven years :-).

In active markets, like today, with tight inventory, it's crucial for buyers to engage effective real estate professionals who understand the business and can help navigate conditions that are changing almost daily. Taking advantage of a market that's at the bottom of its basin is always a good thing, and today is that day!

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Local Happenings

NYC Saint Patrick's

Day Parade

Saturday, March 16, 2024

Head anywhere on 5th Avenue to watch the world's oldest annual St Patrick's Day parade, which has a turnout of over two million spectators every year, with over 150,000 participants marching. This festive event is one you won't want to miss!

More Infomation

Japan Fes

Saturday, March 23, 2024

Explore a culinary journey of Japan without leaving NYC at this year's first outdoor Japan Fes event! If you're a foodie, you need to check out this awesome series!

More Information

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Lifestyle Tips and Tricks

Here's how to 'Tomato Girl' Your Home in Any Season

One of the most talked about interior design and fashion trends this year was the "Tomato Girl" aesthetic. There's a good reason for this - it's polished yet whimsical, with a touch of grand millennial mixed with a dash of quiet luxury.

Courtesy of Forbes

Kitchen + Dining Room From HGTV Dream Home 2024

Beautiful blue cabinetry provides tons of storage in this open kitchen with stunning water views. A lighter aqua-colored island gives family and friends a spot to gather around in this delightful space with layers of blues...

Courtesy of HGTV

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The Monthly Update - February 2024

Riding the Interest Rate Waves...

Manhattan and Brooklyn Market Trends: The current trajectory in market activity continues its upward trend. Buyers are gaining confidence as they anticipate further drops in mortgage rates throughout the year. They are also recognizing that the combination of lower rates and limited inventory will intensify competition, potentially leading to higher prices.

Mortgage Rates: Although rates experienced a slight uptick of approximately 0.25% this month, they remain approximately 2.0% lower than the peak observed in October. Projections indicate a mid-5% rate for 30-year fixed mortgages by the end of the year. Additionally, ARM rates are expected to revert to their historical average, approximately 0.75% lower than 30-year fixed rates, by year-end. This shift is particularly significant for our market and clientele, who show greater receptivity to these products compared to the national average.

Inflation: The Federal Reserve reports a current inflation rate of 3.4%, a decrease from 6.45% at this time last year, with their target set at 2.0%. Some argue that Truflation, considered by many as a more accurate measure, already indicates a rate of 1.87%.

The Fed and the Media: The media often portrays statements from "The Fed" without providing a comprehensive view. It's crucial to remember that the Federal Reserve consists of 12 members, and media outlets may highlight the most sensational quote from one member, often with an opinion differing from the group's average, for the sake of generating clicks.

Lending Landscape: The lending landscape is evolving rapidly with the emergence of niche mortgage products. Some lenders are actively seeking to expand and capture market share, such as in the case of second homes in the Hamptons. Conversely, major banks are scaling back their involvement. It is now more important than ever to collaborate with a lender offering a diverse range of products, rates, and investor connections to address the unique needs of each deal or client.

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Local Happenings

Color Factory‘s

“Colors in Bloom”

FEBRUARY 8, 2024

Take a family trip to the all-ages and one of a kind colorful experiences, 'Colors in Bloom', the latest exhibition at SoHo's Color Factory.

Click HERE to learn more!

Lunar New Year Parade

FEBRUARY 25, 2024

Head to Chinatown to celebrate the year of the dragon! In the heart of Chinatown on Bayard Street between Mott and Mulberry, you will find dancing, festival booths, martial art performers, stunning outfits, firecrackers and more! This is an NYC tradition you don't want to miss!

Click HERE to learn more!

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Lifestyle Tips and Tricks

Foolproof Paint Colors that will Sell your Home

Selling a home with an electric, lime-green living room is going to be more difficult than you originally anticipated...

Courtesy of HGTV

20 Most Affordable Places to Live in the US

With the cost of living on the rise, many Americans are on the hunt for the cheapest places to live in the U.S. that still offer a high quality of life...

Courtesy of Forbes

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Featured Listings

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View fullsize

The Hoffman Team has you covered! With trusted colleagues in over 71 markets nationwide and team members on both coasts, we are here to help - no matter where your move takes you.

Below are some listings from our fellow team member Renato Besabe who works in both NYC and Hawaii.

Featured Hawaiian ListingS:

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The Monthly Update - January 2024

 Five Critical Factors For a Fantastic 2024 

New York City is the heart and focal point of so many global influences, including real estate, finance, tech, the arts, and so much more. So, what needs to happen for Manhattan’s real estate market to have a rebound year after the lows of 2023? Here’s my view on the key factors that will help the Manhattan market improve next year.

 #1 Interest Rates:

With the Federal Reserve signaling lower rates in 2024, the overall real estate market in New York City has already seen a slight uptick in buyer interest, particularly for newer listings. The higher interest rates of the last year affected the overall market, but they impacted properties listed at $2 million or under most of all. The one element with the most potential to help the Manhattan and Brooklyn real estate markets rebound will be whether the Fed actually lowers the federal funds rate and banks follow suit, passing the savings on to buyers in the form of lower mortgage rates. So far, mortgage rates have dipped to their lowest levels since May purely on the strength of three successive Fed rate hike pauses.

#2 The Strength of The General Economy:

The S&P 500 is often seen as the barometer for the general economy. It also provides insight into the health and direction of the New York City real estate market. Simply put, the S&P is a bellwether for our local real estate market. With the Fed hinting at lower interest rates, Wall Street has had a series of rebounds, making up all that had been lost in 2023 in about 24 hours! If Wall Street is happy, it tends to have a trickle-down effect on the local real estate economy. If Wall Street has a banner year, so will Manhattan’s real estate market. As of this newsletter, it seems the Fed’s moves over the last year have started to rein in inflation while avoiding a recession. Bringing all this together would be a win-win for the Manhattan real estate market in 2024.

#3 The 2024 Presidential Election:

In typical presidential election years, agents try to get most business done in Q1 and Q2 before voting takes place. Not much has changed in that respect this year. However, with all that's happening in this particular election, even Q1 or Q2 could be a crap shoot. This may or may not happen, but it could be possible that when Q3 rolls around, buyers could enter wait-and-see mode, possibly re-emerging in Q4 2024 through Spring 2025. But who knows? This is probably the hot-button issue that is hardest to predict. With two former presidents and known entities running against each other, most people can’t put their finger on how the election is going to affect the real estate market this year.

#4 Geopolitical Unrest/Wars:

Global unrest causes ripples in global economies. One can see the unrest in the Middle East/Israel and Ukraine, and its subsequent economic impact, extending through next year. And you can never know where the next conflict will unfold and how it will affect the global or local economies. It’s something to watch out for, for sure. But it’s not an issue we can necessarily foresee. Unrest can unfold anywhere at any time, especially as the world seems to be moving towards more tribal situations. 

#5 The Ongoing Return-to-the-Office Dynamics:

If you look around the skyline of Manhattan, new office buildings are rising everywhere, including the massive new Chase JP Morgan Bank building on Park Avenue.  According to several sources, many Manhattan workers are back in the office at least part of the time, with return-to-work levels reaching almost 80% of January 2020 levels as of June 2023. If you look around Midtown at lunchtime or after work, it honestly feels more like 110% of pre-pandemic levels. Even more workers are expected to return to the office in 2024, which could substantially impact both the rental and sales markets. So, we're watching this indicator like a hawk. 

Looking Ahead:

Manhattan and the overall New York City real estate market stand at a crossroads. Movement in either direction is contingent on several macro and micro factors, all vying for influence. Interest rates, global economies and localized events all will play their part in how 2024 pans out. Today, the NYC real estate market’s trajectory is being shaped by many elements. While challenges persist, we are watching the resilience and dynamism of a Manhattan real estate market seemingly on the verge of bouncing back.

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Local Happenings:

NYC Broadway Week

JANUARY 16 - FEBRUARY 4

It's that time again! Head to the theater district for an extended three weeks of comedy, drama, musicals and more at this year's NYC Broadway Week! Tickets for exclusive select shows are available on sale January 9.

Learn More

Winter Jazzfest

JANUARY 10 - 18

Experience the cool groove of this year's annual Winter Jazzfest! The 20th year of this exciting music marathon comprises of over 600 artists, 150 groups on 20 stages for over 10 nights at NYC's hottest jazz clubs in downtown Manhattan and Brooklyn. For all you music lovers, this is a festival you don't want to miss!

Learn More

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Lifestyle Tips and Tricks:

Pantone Color of the Year 2024...

"In seeking a hue that echoes our innate yearning for closeness and connection, we chose a color radiant with warmth and modern elegance. A shade that resonates with compassion, offers a tactile embrace, and effortlessly bridges the youthful with the timeless."

- Leatrice Eiseman, Executive Director, Pantone Color Institute

Read More

8 Interior Design Trends Going Away in 2024

Are you planning to renovate your home or give it a refresh in 2024? Trends have been interesting for the past few years...

Read More

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